Razorpay Files Confidential IPO Papers: Aims to Raise $600M

Fintech major Razorpay has initiated the process for its Initial Public Offering (IPO) by filing its draft red herring prospectus (DRHP) through the confidential route, according to a recent newspaper advertisement. The move signals the company’s progression towards becoming a publicly listed entity.

The IPO is anticipated to raise between $500 million and $600 million, as reported by MoneyControl citing industry sources. This comes after earlier reports in April suggested Razorpay was looking to raise a larger sum of $600 million to $700 million at a valuation of $5 billion to $6 billion. This potential valuation is notably lower than its last private funding round valuation of $7.5 billion.

To manage the IPO process, Razorpay appointed investment bankers including Axis Capital, Kotak Mahindra Capital, JP Morgan, and Citi earlier this year. The company, founded in 2014 by Harshil Mathur and Shashank Kumar, operates a comprehensive payments and financial services platform, offering solutions for payment acceptance, disbursals, lending, and business banking.

Razorpay claims to serve over 8 million businesses, with approximately 80% of its clientele comprising small businesses, digital-first brands, and startups. The company has secured over $800 million in funding to date from prominent investors such as Tiger Global, Y Combinator, and Lightspeed.

In the fiscal year 2025, Razorpay experienced a shift into the red, primarily due to an Employee Stock Ownership Plan (ESOP) expense of ₹1,209 crore and one-time restructuring costs associated with its domicile shift to India in preparation for the IPO. Despite this, the company reported a significant 65% year-on-year increase in operating revenue, reaching ₹3,783 crore in FY25, up from ₹2,296 crore in the preceding fiscal year.